The global MVNO market is expected to reach USD 73.20 billion by 2020, according to a new study by Grand View Research, Inc. Increasing global mobile subscribers and demand for data services is expected to favor market growth over the next six years. MVNOs provide differentiated services to customers by targeting niche market segments such as retail, business, roaming, etc. This helps to avoid direct competition with MNOs and also generates additional revenues for both MVNO and MNO.
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The global voice services market is expected to be stagnant, whereas data and value added services are expected to generate revenue for the mobile market over the forecast period. MVNOs play an important role to address this segment; they buy minutes in bulk from the MNOs and sell them to their customers at discounted price. Increasing technology advancements such as LTE and 4G infrastructure are expected to provide new avenues to the MVNO market. However, lack in expertise may restrict market growth over the next six years.
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Further key findings from the study suggest:
• Global MVNO subscribers are expected to exceed 300 million by 2020, at a CAGR of 10.7% from 2014 to 2020.
• Europe was estimated to be the largest regional market in 2013, and accounted for over 40% of the global MVNO market. The regulatory framework in the EU has played a crucial role in the growth of MVNOs in the region. Countries such as the UK, France and Germany have a strong MVNO base, and are further expected to witness growth over the next six years.
• TracFone Wireless is the major MVNO operating in the U.S. Asia Pacific and Latin America markets are expected to grow at a considerable...